Quote:
Originally Posted by J. Fees  right, as i pay quarterly taxes, but it is easier to manipulate things when you are self employed, rather than working for the city of dallas. not that i would ever manipulate anything. |
Sure, one can cheat. Most don't out of fear of the consequences. But some certainly will. I pay quarterlies as well as payroll taxes...
Quote:
Originally Posted by J. Fees ex. of a rich guy that makes over million in his biz, but pays himself a 100k salary and shields everything else through his business. obviously his business pays taxes as well, but he himself doesnt pay the amount of taxes he actually earns. |
Depending on the form his business is set up his tax regime will be different. Some formations use pass through taxation and others do not. So, your example is too vague to really have value. Could be that he owns a corporation that pays him dividends... in which case the corporation pays income taxes on the money, then gives it to owner who pays further taxes on the same money. If he pays himself a salary he pays taxes on the income.
Quote:
Originally Posted by e-brake ROFL, if thats what you want to believe. My multi millionaire boss who owns homes and property in several states has been able to hire accountants that make it look like he loses money every year. With all the loopholes he uses, he actually received a Stimulus check since on paper he is in poverty....he took the check to the bank in his brand new $120,000 BMW convertable. He hasnt had to pay any taxes on income in over 8 years and its all completely legal using loopholes that are part of the IRS system.
Even Warren Buffet the richest man in the US went on record saying that he should pay more taxes. He even pointed out that his secretary has a higher tax rate to pay than him. |
Sure Kevin. Wait until he gets auditted. Tax cheats are out there... hell look at Obama's cabinet. Don't think they, or your boss, are the norm.
Further, legal means of tax avoidance are just that... legal. So depending on which side of the line your boss is on he's eityher got great tax help or he's got a sword dangling over his head.